Business
Precision Drilling Meets Annual Capital Allocation Targets and Provides Financial and Operational Updates
CALGARY, Alberta, Jan. 06, 2026 (GLOBE NEWSWIRE) -- This news release contains "forward-looking ...
About this update from Precision Drilling Corporation
[{"type":"text","content":"Precision Drilling Meets Annual Capital Allocation Targets and Provides Financial and Operational Updates\nCALGARY, Alberta, Jan. 06, 2026 (GLOBE NEWSWIRE) -- This news release contains \"forward-looking information and statements\" within the meaning of applicable securities laws. For a full disclosure of the forward-looking information and statements and the risks to which they are subject, see the \"Cautionary Statement Regarding Forward-Looking Information and Statements\" later in this news release. Precision Drilling Corporation (“Precision” or the “Company”) (TSX:PD; NYSE:PDS) is pleased to announce a series of positive updates reflecting the strength of its financial performance and disciplined capital allocation strategy, including: 1) the achievement of its 2025 debt reduction target and year end liquidity update; 2) commitment to its capital allocation framework; and 3) a financial and operational update. 2025 Debt Repayment and Year End Liquidity Update Precision reduced debt by $101 million in 2025, achieving its annual debt reduction goal. As at December 31, 2025, Precision’s outstanding debt obligations included: US$400 million – 6.875% unsecured senior notes due January 15, 2029US$100 million drawn on the Senior Credit Facility The Company ended 2025 with a cash balance of approximately $85 million and total available liquidity of approximately $447 million. Capital Allocation Framework Update Precision remains firmly committed to its long-term debt reduction target of repaying $700 million between 2022 and 2027 and reaching a sustained Net Debt to Adjusted EBITDA leverage ratio1 of below 1.0 times. Over the past four years, we have reduced our debt by $535 million and notably lowered our Net Debt to Adjusted EBITDA leverage ratio, which we expect to be approximately 1.2 times as at December 31, 2025. During 2025, Precision returned $76 million to shareholders through share repurchases under its Normal Course Issuer Bid, meeting its annual target of allocating between 35% and 45% of free cash flow before debt repayments to share repurchases. As at December 31, 2025, the Company had 12,932,399 shares outstanding, compared to 13,779,502 as at December 31, 2024, representing a decrease of 6%. For the past decade, Precision has prioritized its capital allocation plans, alloca...